Key Points from ‘Lost in Transition’ Project on PA’s Mortgage Aid

Struggles Persist for Pennsylvania Homeowner Assistance Program

In Pennsylvania, efforts to assist homeowners hit hard by the pandemic have hit significant roadblocks, with the state’s Homeowner Assistance Fund facing continued struggles even after attempts to revamp the program.

Underestimation of Application Volume

Initially, the Pennsylvania Housing Finance Agency (PHFA) grossly underestimated the volume of pending applications, only realizing the true magnitude after deciding to terminate its contract with the previous program administrator. The transition to a new system proved arduous, with the discovery that over 18,000 applications awaited attention.

Registration Hurdles

A significant portion of these pending applications remains in limbo as homeowners must re-register in the revamped system. Despite concerted outreach efforts, including calls, emails, and events statewide, only about half of the applications have successfully navigated this registration process.

Lengthy Waiting Periods

Even for those who have successfully registered, the wait for assistance is prolonged. By late July, only a fraction of the registered applications had been fully processed, leaving the majority of applicants in a state of uncertainty regarding their financial assistance.

Disruptions in Aid

The transition between program administrators has resulted in disruptions for some homeowners, with aid payments abruptly ceasing without warning. This has left already vulnerable homeowners struggling to cover essential bills that the state had previously committed to assisting with.

Challenges in Prioritization

Despite attempts to prioritize assistance for those at greatest risk of losing their homes or utility services, PHFA faces challenges in accurately assessing and categorizing applicants based on need. The system for prioritizing applications remains uneven, contributing to further delays and frustrations for homeowners in dire circumstances.

In summary, the Pennsylvania Homeowner Assistance Program continues to grapple with unforeseen challenges and systemic issues, leaving thousands of homeowners in limbo as they await vital financial support during these challenging times.